According to Odaily, Bloomberg crypto analyst Jamie Coutts shared insights on the X platform regarding Bitcoin's recent price fluctuations following the unwinding of yen carry trades. Coutts highlighted several key points in his analysis:
Firstly, he acknowledged that earlier this year, he underestimated the rapid rise in open interest (OI) and perpetual contract funding rates. This oversight contributed to the significant price movements observed in Bitcoin. Secondly, he noted that the market's neutral stance before the unwinding of yen carry trades limited the extent of liquidations so far.
Despite the potential for further declines in Bitcoin's price, Coutts pointed out that the reduction in open interest and negative funding rates suggest a higher likelihood of Bitcoin consolidating sideways rather than experiencing a sharp drop. Additionally, he mentioned the expectation of imminent central bank intervention, which makes Bitcoin appear attractive at its current price levels.
